Multi-Unit Franchisee Magazine Issue IV, 2013 | Page 81
are suggesting is to not let historical data
completely control your decision-making
and lose sight of your ability to stand back
and assess the situation.
Furthermore, invest the time up front
to define the right strategic characteristics of a transaction for your organization. Not all transactions represent the
right fit for all companies. Know what is
important to you. Many buyers we come
across don’t really even know what they are
looking for in a transaction. So how can
they know if the right situation is staring
them in the face when they have no idea
what they should be looking for? We are
reminded of the old adage: “If you don’t
know where you are going, any road will
get you there.”
Finally, if you come across an opportunity that seems to meet your criteria,
invest the time up front to fully understand the transaction before presenting
an offer. Too often, buyers want to chase
and prematurely lock up a deal before
If you come across
an opportunity that
seems to meet your
criteria, invest the
time up front to
fully understand
the transaction
before presenting
an offer.
they truly understand it, only to back off
or re-trade on it once they dig in and assess the transaction. Attempting to understand the details of the business only after
a deal has been agreed to is often a recipe
for disaster—for both parties.
In conclusion, establish criteria for what
you are seeking in a deal. That way you will
recognize the right deal when it becomes
available. Do your analysis, but focus on
the big picture. Ask yourself, “Given my
skills, experience, and organization, what
specific avenues to create value does this
opportunity present to me?” And then,
don’t let distractions derail the process:
have the tenacity to see it through to a
successful outcome.
Dean Zuccarello, CEO
and founder of The Cypress
Group, has more than 30
years of financial and transactional experience in mergers, acquisitions, divestitures,
strategic planning, and financing in the restaurant industry. The
Cypress Group is a privately owned investment bank and advisory services firm focused
exclusively on the multi-unit and franchise
business for more than 22 years. Contact
him at 303-680-4141 or [email protected].
Multi-Unit Franchisee Issue I V, 2013
79